Definition of Record date

The record date is the cut-off time frame established by an organization in order to determine which investors are eligible to obtain results or submission.

Brief Explanation of Record date

The investors of record as of the record date will be qualified for obtaining the results or submission announced by the organization. It is also known as the time frame of record. It is important because of its regards to another key time frame, the ex-dividend time frame. On and after the ex-dividend time frame, a purchaser of the inventory will not get the results as the supplier is qualified for it. The ex-dividend time frame is set exactly two working times before the transaction is carried out. It is because of the T+3 system of settlement currently used in North America, whereby inventory deals negotiate three working times after the deal is carried out. Thus, if a trader purchases a regular two working times before its record date, his or her trade would only negotiate the day after the record date. He or she would therefore not be a trader of record for receiving the results.